Revision: Nov. 14, 2023, 3:09 p.m.
Rep. Ammon, Hills. 42
October 13, 2023
2023-2321h
10/05
Amendment to HB 558-FN
Amend the title of the bill by replacing it with the following:
AN ACT requiring the department of energy to initiate a microgrid study.
Amend the bill by replacing all after the enacting clause with the following:
1 Department of Energy; Microgrid Study; Department Investigation; Report.
I. Within 120 days of the effective date of this section, the department of energy shall initiate a proceeding to investigate the potential benefits, risks, and key considerations around developing a framework for electricity microgrids in the state. In so doing, the department shall consult with electric distribution utilities, microgrid technology companies, distributed generation project developers, high density load businesses, municipalities, one or more state universities, and any other relevant entities.
II. The department’s investigative proceeding shall examine and make recommendations concerning:
(a) Definitions and technical requirements to qualify as a microgrid.
(b) Utility partnerships with municipalities or businesses to develop microgrids that improve reliability and/or avoid costly infrastructure upgrades.
(c) Evaluation criteria and approval process for utilities to propose a limited number of microgrid pilot projects to the public utilities commission annually.
(d) Interconnection with the main power grid including engineering reviews, utility system reliability and operational impacts, cost allocation, and coordination with utilities.
(e) Cybersecurity and physical security standards for microgrids.
(f) Potential benefits of microgrids for grid resilience, peak load reduction, and energy costs.
(g) The role of microgrids in supporting economic growth, clean energy innovation, and reliable electricity service.
(h) Existing regulatory or bureaucratic barriers to microgrid adoption, and changes required to mitigate them.
(i) Any other relevant issue raised in the department’s investigative proceedings.
III. The department shall report its findings and recommendations to the legislature no later than one year after initiating the study. The report shall provide guidance to the legislature and the public utilities commission on developing a microgrid pilot program that balances economic development, grid stability, security, costs, and potential impact on rates for existing utility customers and microgrid participants.
2 Effective Date. This act shall take effect 60 days after its passage.
2023-2321h
AMENDED ANALYSIS
This bill requires the department of energy to initiate a study to investigate the potential benefits, risks, and key considerations around developing a framework for electricity microgrids in the state.